VCL FS tightens rules on reversing wrong M-Pesa transfers

RETHABILE MOHONO

MASERU – Vodacom Lesotho Financial Services (VCL FS), operator of the M-Pesa mobile money platform in Lesotho, has issued a definitive policy statement outlining the limited circumstances under which funds sent to an incorrect M-Pesa account can be reversed.

The company cites the Central Bank of Lesotho’s 2017 Payment Systems Regulations as the governing framework.

VCL FS emphasized that Regulation 17(2) prohibits reversing electronic transfers once settled, safeguarding the finality of digital payments. Exceptions exist only in specific, legally justifiable situations.
VCL FS stated that it will only initiate a unilateral reversal in situations where funds were sent to an account that is suspended, frozen, or no longer linked to an active mobile number. For all other cases involving valid and active accounts, the reversal can only be carried out with the recipient’s consent.

The company stressed that M-Pesa already has built-in safeguards to help customers avoid sending money to the wrong account. These include a confirmation screen showing the recipient’s full name before finalising the transaction and a prompt requiring the sender to enter their four-digit M-Pesa PIN to authorize payment.

“These measures give customers a final opportunity to verify details before completing a transfer,” VCL FS said.

In cases where money is mistakenly sent to an active account, VCL FS advised that the sender must take immediate action to request a reversal. The process involves contacting the Call Centre on 114, then using the handset menu (*200#) to lodge a reversal request by providing the transaction ID and confirming with the M-Pesa PIN.

Upon request submission, the unintended recipient will receive an SMS requesting permission to return the funds. The reversal is entirely dependent on the recipient’s approval.

VCL FS strongly urged all M-Pesa users to double-check recipient details before every transaction, reiterating that the ultimate responsibility for ensuring accuracy rests with the sender.